Facebook shows it can succeed at mobile
Wall Street has kissed and made up with Facebook, which has reported strong third quarter revenue, particularly in the mobile arena.
The company's shares showed their biggest rise since the company's badly-managed IPO back in May, jumping 19 percent to $23.23 at yesterday's close.
The reason for the enthusiasm is Facebook's big boost in revenues, up 32 percent at $1.26 billion, and well above analysts' expectations. It did, though, post a net loss of $59 million, compared to a net income of $227 million last year.
Facebook had 1.01 billion monthly active users at the end of September, up 26 percent on last year. But mobile use rose even more sharply, with 604 million monthly active users - up 61 percent on last year.
"As proud as I am that a billion people use Facebook each month, I'm also really happy that over 600 million people now share and connect on Facebook every month using mobile devices," says CEO Mark Zuckerberg.
"People who use our mobile products are more engaged, and we believe we can increase engagement even further as we continue to introduce new products and improve our platform. At the same time, we are deeply integrating monetization into our product teams in order to build a stronger, more valuable company."
Ad sales made up 86 percent of revenue, with mobile ad sales - the company's holy grail - accounting for 14 percent of total revenue in the quarter, at $150 million.